Small businesses could be hurt by newly proposed tax reforms

April 15, 2011

WASHINGTON — The new tax reforms that seek to revamp the corporate code separately from the individual could force small businesses to pay more in taxes, reported The Hill.

Due to the elimination of business tax credits and deductions, small businesses that pay their taxes as individuals could be looking to pay about 8 percent more, which could be up to $27 billion more than usual, the article reported.

"I think, fundamentally, Congress has to revisit this basic question about whether it makes sense for us as a country to allow certain businesses to choose whether they''re treated as corporations for tax purposes or not," said Treasury Secretary Timothy Geithner.